Organizational innovation for rapidlychanging environments : A case study on large multinational Swedish companies in comparison to the Silicon Valley model

Abstract: Megatrends such as globalization, digitalization and the increased rate of technological   developmentare all example of aspects that directly affect and challenge companies. While it opens up for new business opportunities it also serves an increasingly competitive climate and puts tougher pressure on organizations. While several traditional management models are focused on internal aspects such as improving processes, reducing waste and removing non-value adding procedures it is argued in literature that having dynamic capabilities is key to succeed in a more rapidly changing environment. This means being able to not only handle daily business but also to sense, shape and seize opportunities and transform the organization accordingly. The Silicon Valley Model (SVM) is a holistic management model that aims at generating dynamic capabilities for firms in rapidly changing environments. This study is centered on identifying if the five principles that constitute the SVM are adopted in large multinational Swedish companies founded during the industrial era. The five principles are: 1. The Dynamic Firm 2. A People-Centric Approach 3. An Ambidextrous Organization 4. An Open Organization That Networks with Its Surroundings 5. A Systems Approach By interviewing 14 C-level employees in Telia, Lantmännen, Trelleborg and “Company A” we found that Telia and Lantmännen have implemented or have clear transformation initiatives that indicate that they are moving towards implementing all the management principles of the SVM. Trelleborg have or are moving towards all principles except an ambidextrous organization, which was not found during interviews. The fourth case company is anonymous and therefore called Company A. They  are operating in a more stable environment, which moves towards being more dynamic. They was seen implementing some management principles of the model, but did not have a holistic approach for it. The common denominator is that all companies come from having established satisfyingly efficient operational cores and profitability levels, before shifting focus towards having a growth and innovation focus.